View From The Hill: December-8-2015

Posted on Posted in Views From The Hill

Why Not Blame It on Transports Instead of Energy Prices?

bulls-and-bears4

Typically, it is the winners that lead the market, which is not to say that losers have no influence. In the financial media, many are blaming lower oil prices for the selling of equities. While this may be partially true, I say take a closer look at the DJ-20 Transportation stocks. This is a group that tends to benefit from cheaper energy prices, but their performance of lately would suggest otherwise. 

The VIX broke out into a new uptrend today, but I would prefer to see it trade a little higher before jumping on the bandwagon. If you are bearish on stocks, Volatility is definitely to which you can arrive late and still enjoy some upside from the downside of stocks.

In the bond market, Treasury rates are consolidating after a short term correction and therefore bond prices are trading in a neutral pattern.

In commodities, gold resumed its downtrend. So much for the dead cat bounce. Like oil, the price chart remains bearish.

In currencies, the U.S. Dollar may be in correction mode, but this appears to be almost over. as it is finding support near Friday’s closing levels.

There are not too many places to hide in this market and real estate has not been one of them as of lately. In lieu of this, the overall long-term trends for the DJ Home Construction  and DJ Real Estate remain solidly bullish (until further notice).

 

 


Performance Summary

*Trends: ST = short-term; MT = Intermediate-term; LT = long-term

vfth-performance-12-8-2015
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Market Condition

The volatility and tug of war between bulls and bears continues. Right now the bears have the edge, but as long as the SP-500 maintains key support at 2040, the bulls are still in the game. Momentum is gyrating, this time favoring the down side.

Hillbent for the Market Direction…

 

Daily Chart Technical Analysis
sp500-daily-12-8-2015
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Market Breadth
Advancers 141 Decliners 361
New 5-day highs 51 New 5-day lows 206
New 52-week highs 21 New 52-week lows 37
Bullish reversals 93 Bearish reversals 32

 

Market Momentum
% > 20 M.A. % > 50 M.A. % > 100 M.A. % > 200 M.A.
41% ↓ 52% ↓
47% ↓
45% ↓
↑ = positive momentum; ↓ = negative momentum; and ↔ = neutral momentum

 


Volume Radar Alerts

  • Vol % = volume percentage greater than average volume
  • SIR = short interest ratio or days to cover
vfth-volume-radar-12-8-2015
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Disclaimer

Hillbent does not provide individualized market advice. The information we publish regards securities in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification. Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements. Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

 

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